Why gold now costs more than platinum

An ounce of gold now costs more than an ounce of platinum.

Historically, over the last 20 years or so, platinum has traded at a premium to gold, according to Tim Murray, general manager of precious metals marketing at Johnson Matthey, though the two metals have been sitting pretty close to each other over the last couple of months.

“Gold has now broken out and all that really indicates is that the fear trade is alive and healthy,” said Murray.

“Nobody trusts Europe (banks, PIIGS) and the same goes for the ability of the U.S. government to control their spiraling deficits,” he said. “Platinum is an industrial metal, and although traders will try to capitalize on its relative value to gold, it will struggle to keep up if the financial news keeps getting worse.”

December gold Dec. gold GC1Z closed at $1,873.30 an ounce, down $3.60. October platinum PL1V fell $26.60 to finish at $1,858.20.

–Myra Saefong

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